19 more banks now offer capital gains accounts, easing tax exemption for property sellers
Nineteen new banks have received authorisation to provide Capital Gains Account Scheme (CGAS) services. This expanded access enables property sellers to deposit unutilised capital gains and claim income tax exemptions under the relevant sections of the Income Tax Act.
- Nov 20, 2025,
- Updated Nov 20, 2025 7:02 PM IST
The government has authorised 19 additional banks to offer Capital Gains Account Scheme (CGAS) services, significantly widening access for taxpayers looking to save income tax on capital gains arising from the sale of property or other long-term assets. The move enables individuals to deposit unutilised capital gains in far more locations than before, easing compliance and improving convenience for those seeking exemptions under various sections of the Income Tax Act.
The expansion comes on the heels of major changes introduced through the Finance (No. 2) Bill, 2024, which rationalised the capital gains framework. The reforms reduced holding periods to just one or two years, introduced a standard tax rate of 12.5% for most assets, eliminated indexation benefits, and brought uniformity in treatment between resident and non-resident taxpayers. Together, these changes aim to simplify capital gains taxation while reducing ambiguity for investors and property sellers.
CGAS plays a critical role for individuals who are unable to reinvest their capital gains before the income tax return filing deadline. Industry tax experts note that reinvestment timelines—such as the two-year window for purchasing a new residential property—often extend beyond the due date for filing returns. In such situations, depositing the unutilised gains into a CGAS account helps taxpayers remain eligible for exemptions. Until now, only a limited number of public sector banks offered this facility.
Under the new notification, all non-rural branches of major private-sector and regional banks—including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, IDFC First Bank, IndusInd Bank, Yes Bank and others—are authorised to accept CGAS deposits. Rural branches, defined as those located in areas with populations below 10,000, remain outside the scheme.
Tax professionals observe that the expansion will make it easier for taxpayers to claim exemptions available under Sections 54, 54F and 54EC, which allow capital gains to be reinvested into residential property or specified bonds. The CGAS mechanism remains essential for individuals who need to park funds temporarily until reinvestment is completed.
Overall, the streamlined tax structure, removal of indexation benefits and expansion of authorised banks reflect the government’s broader effort to simplify compliance and enhance accessibility for individuals planning capital gains reinvestments.
The government has authorised 19 additional banks to offer Capital Gains Account Scheme (CGAS) services, significantly widening access for taxpayers looking to save income tax on capital gains arising from the sale of property or other long-term assets. The move enables individuals to deposit unutilised capital gains in far more locations than before, easing compliance and improving convenience for those seeking exemptions under various sections of the Income Tax Act.
The expansion comes on the heels of major changes introduced through the Finance (No. 2) Bill, 2024, which rationalised the capital gains framework. The reforms reduced holding periods to just one or two years, introduced a standard tax rate of 12.5% for most assets, eliminated indexation benefits, and brought uniformity in treatment between resident and non-resident taxpayers. Together, these changes aim to simplify capital gains taxation while reducing ambiguity for investors and property sellers.
CGAS plays a critical role for individuals who are unable to reinvest their capital gains before the income tax return filing deadline. Industry tax experts note that reinvestment timelines—such as the two-year window for purchasing a new residential property—often extend beyond the due date for filing returns. In such situations, depositing the unutilised gains into a CGAS account helps taxpayers remain eligible for exemptions. Until now, only a limited number of public sector banks offered this facility.
Under the new notification, all non-rural branches of major private-sector and regional banks—including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, IDFC First Bank, IndusInd Bank, Yes Bank and others—are authorised to accept CGAS deposits. Rural branches, defined as those located in areas with populations below 10,000, remain outside the scheme.
Tax professionals observe that the expansion will make it easier for taxpayers to claim exemptions available under Sections 54, 54F and 54EC, which allow capital gains to be reinvested into residential property or specified bonds. The CGAS mechanism remains essential for individuals who need to park funds temporarily until reinvestment is completed.
Overall, the streamlined tax structure, removal of indexation benefits and expansion of authorised banks reflect the government’s broader effort to simplify compliance and enhance accessibility for individuals planning capital gains reinvestments.